Peets Continues Craft Roaster Acquisitions With Majority Stake In Intelligentsia Coffee

EMERYVILLE, CA -- Peet's Coffee & Tea said ti will acquire a majority stake in Intelligentsia Coffee, a pioneer of the third-wave coffee movement. The news comes on the heels of Peet's announcement in early October that it was buying Stumptown Coffee Roasters, a high-end specialty coffee company based in Portland, OR, known for its cult following. Financial terms were not disclosed for either deal.

Intelligentsia, founded in 1995, is a super-premium coffee roaster and retailer based in Chicago with roasting operations in its hometown, as well as Los Angeles and San Francisco. With 10 coffee bars across Chicago, Los Angeles and New York, Intelligentsia is known for its "direct trade coffees," culinary coffee experiences and education.

Intelligentsia will continue to operate independently, with founders and owners Doug Zell and Emily Mange and Geoff Watts at the helm.

"We're excited to welcome Intelligentsia to the Peet's family as the growth of the super-premium coffee market continues to explode in the U.S.," said Peet's chief executive Dave Burwick. "It's driven by 18 to 34 year-olds who are more affluent, purchase premium brands from other categories like craft beer and pressed juice, and seek variety and new experiences. To capture more than our fair share of this market, it's important that we offer differentiated craft coffee brands with unique propositions and appeal."

In other news, Peet's is making headlines as it faces a class-action suit, claiming the California-based coffee chain overcharges French press coffee by labeling that is based on the size of the brewing device rather than the actual amount of coffee. French press coffee is sold in 12-or 32-fl.oz. sizes at Peet's, but the 32-fl.oz. option comes in 24-fl.oz. cups, thus overcharging the customer, according to the lawsuit.